Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 4.76 [4][15]. Core Insights - The company has shown stable revenue growth, with a 19.3% year-on-year increase in revenue to RMB 1.16 billion for the first half of FY2024, driven by a net increase of approximately 10,000 students, bringing total enrollment to 96,000 [2][4]. - The revenue growth by educational level includes vocational education at 21.7%, secondary vocational education at 7.7%, and non-academic vocational education at 4.9%, with higher vocational education accounting for 84.9% of total revenue [2]. - Operating expenses exceeded expectations, particularly administrative costs, which rose by 47.2% year-on-year to RMB 230 million, leading to a decline in net profit margin from 37.7% to 35.4% [2][4]. Financial Summary - For FY2024, the company is projected to achieve revenue of RMB 2.205 billion, reflecting an 11.8% growth rate, with net profit expected to reach RMB 673 million, an 8.8% increase [5][9]. - The gross profit margin is forecasted to be 49.6% for FY2024, slightly down from previous years [9][12]. - The company plans to invest approximately RMB 530 million in capital expenditures for the year, focusing on upgrading teaching facilities across various campuses [3][4]. Enrollment and Growth Projections - The company anticipates enrollment to grow to 105,000 students by the 2024/25 academic year, representing an 8.8% increase year-on-year [4][5]. - The report highlights the establishment of new industry-specific colleges and courses to align with market demands, such as data science and artificial intelligence [3][4]. Cash Flow and Financial Health - As of February, the company had approximately RMB 1.5 billion in cash, with annual operating cash flow around RMB 1.3 billion, sufficient to meet future capital needs [3][4]. - The report indicates a stable dividend payout ratio of 30%, with an interim dividend of HKD 0.096 per share [2][4].
盈利增长稳定，但费用开支超预期